Thursday 27 July 2017

Details to be mentioned in Form GSTR-3B

In order to address the concerns of small taxpayers who are still maintaining manual records, the GST Council has now proposed a relaxation in return filing for the month of July and August. September onwards, every taxpayer has to strictly follow the regular provisions of filing return on 10th, 15th and 20th of next month i.e. October. Also, there will be no late fee or penalty levied for the initial two months.
As per the revised rules, a new form GSTR-3B will be introduced by the government. Every taxpayer needs to file his return on self-assessment basis for the first two months i.e July and August. These return forms have to be filed by 20th of next month. Simultaneously, the taxpayer has to file the GSTR-1 for the month of July on or before September 5; an extension of 25 days has been extended for the month of July. For the month of August, this extension is limited to a period of 10 days. Once GSTR-1 is filed, GSTR-2 and GSTR-3 will auto-populate with information furnished under GSTR-1. Eventually, this GSTR-3 will be matched against GSTR-3B and any difference will be refunded or needs to be paid as the case may be. However, no penalty or late fees will be charged on the difference.
Form GSTR-3B needs to be filed by a taxable person under GST for submitting the provisional assessment of the tax liability. Provisional assessment of the taxes to be filed under form GSTR-3B is only applicable for the month of July and August. A taxable person has to file the GSTR-3B for the invoices generated in July by 20th August and for the invoices pertaining to the month of August has to be filed by 20th September. Each manufacturer, trader, service provider who is liable to register under GST has to complete a self-assessment of his taxes and has to file form GSTR-3B.

A full detail of the tax under different heads CGST, SGST, UTGST, IGST and cess for the transactions which were taxable due to reverse charge. Tax applicable on following transactions has to be mentioned
  1. Sale of goods/ providing services which are not zero rated, nil rated or exempted.
  2. Sale of goods/ providing services which are zero rated
  3. Sale of nil rated or exempted goods or service provided which are nil rated or exempted.
  4. Purchase of goods or services received on which reverse charge is applicable.
  5. Sale of products or services provided which are not covered under GST.
Following details are to be mentioned for the sale of goods or providing service to an unregistered dealer, composition taxable person and entities holding UIN like WHO, embassy etc.
  1. Name of the place from where the goods were dispatched or from where the service was provided.
  2. Total Taxable value* of the goods sold or the services provided.
  3. A total of the Integrated goods and service tax (IGST) applicable on the transactions.
* Value of Taxable Supplies = Value of invoices + value of Debit Notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices

Details of ITC Available

A thorough calculation of the ITC available on the import of goods or services and on account of the purchases made from an ISD and purchases on which reverse charge is applicable has to be completed by the taxable person. Net ITC available has to be mentioned after deducting the ITC reversed for example due to the inputs being returned. ITC which is ineligible to be claimed under GST like the ITCon the supply of goods or service by a fitness club or health center.
The total value of the purchase of inputs from a composition taxable person or services received and nil rated or exempted inputs have to be bifurcated separately for intrastate and interstate.
Every taxable person under GST needs to calculate the tax liability under the different heads IGST, CGST, SGST, UTGST, and cess. Details of ITC available under different heads used for paying the tax liability. Any liability under head interest and the late fee has to be shown separately. The amount of tax or cess paid in cash is to be shown separately.
Credit available due to the TDS deducted on acceptance of government contract or TCS collected on being an online aggregator has to be mentioned in the form GSTR-3B. Advance received is to be adjusted while calculating the total taxable value of the goods supplied or services provided and is not required to be shown separately in the form GSTR-3B.

Format of GSTR- 3B

Thursday 20 July 2017

Trade notice by CGST and Central Excise Commissionerate Surat

Trade notice by CGST and Central Excise Commissionerate Surat - Proper officers relating to registration and composition levy. Issue relating to  LUT / Bond for exports.
Read more:
https://drive.google.com/open?id=0B1rRav-P4-8JQWNxRG1NLVFxQ0RTSnRmYS1jNjZ5WkFfdzlv

Monday 17 July 2017

Unregistered Transporter is required to be enrolled under GST

An unregistered transporter shall submit the details regarding his business for enrollment under GST. 

According to Notification 5/2017 – Central Tax, dated 19th June, 2017, the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act. 

Thus those GTA service providers are exempted from obtaining registration under GST, who are exclusively providing GTA service to specified persons and on those services such specified persons are liable to pay GST on reverse charge basis as per section 9(3) of the Act.

As per Section 35(2), every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.

If a Transporter is not registered, then he shall submit the details regarding his business electronically on the common portal in FORM GST ENR-01 and upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.

Any person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him along with the GSTIN of the registered consigner and consignee for each of his branches.


“Section 35(2) of CGST Act. Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.”


“Rule 58. Records to be maintained by owner or operator of godown or warehouse and transporters.- (1) Every person required to maintain records and accounts in accordance with the provisions of sub-section (2) of section 35, if not already registered under the Act, shall submit the details regarding his business electronically on the common portal in FORM GST ENR-01, either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.”

Thursday 13 July 2017

Clarification regarding Letter of Undertaking in place of a bond for export without payment of integrated tax for Exports

As per Rule 96A of the Central Goods & Services Tax Rules, 2017 procedure for refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking has been prescribed. Further, Notification No. 16/2017-Central Tax, dt. 07-07-2017 has notified conditions and safeguards for the registered person who intends to supply goods or services for export without payment of integrated tax, for furnishing a Letter of Undertaking in place of a Bond.
The Central Government vide Circular No. 4/4/2017-GST dt. 07-07-2017 has further clarified the following:
  1. The procedure for submission and acceptance of bond has already been prescribed vide Circular No. 2/2/2017-GST dated 4th July 2017.The bond will be furnished on non-judicial stamp paper of the value as applicable in the State in which bond is being furnished.
  2. the exporters will furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11 as the consignment wise bond would be a significant compliance burden on the exporters. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter will ensure that the outstanding tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter will furnish a fresh bond to cover such liability.
  3. The jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the track record of the exporter. If Commissioner is satisfied with the track record of an exporter then furnishing of bond without bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15% of the bond amount.
  4. LUT will be valid for 12 months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond. Exports may be allowed under existing LUTs/Bonds till 31st July 2017. Exporters will submit the LUTs/bond in the revised format latest by 31st July 2017.
  5. the Bond/LUT will be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, if in a State, the Commissioner of State Tax so directs, by general instruction, to exporter, the Bond/LUT in all cases be accepted by Central tax officer till such time the said administrative mechanism is implemented.
  6. Further Circular No. 26/2017 – Customs dated 1st July 2017 has clarified that the existing practice of sealing the container with a bottle seal under Central Excise supervision or otherwise would continue till 01st September 2017. Such sealing will be done under the supervision of the officer having physical jurisdiction and a copy of the sealing report would be forwarded to the concerned Deputy/Assistant Commissioner. These practices would also apply to exports made on or after 1st July 2017.

Monday 10 July 2017

ONE TAX ONE NATION - Central GST & Integrated GST Acts extended to State of J&K

President Shri. Pranab Mukherjee promulgates Ordinances to extend Central GST & Integrated GST Acts to State of J&K. For copies of the ordinances click the link: https://drive.google.com/open?id=0B1rRav-P4-8JMkZDNWhBeHJFQms